Feeds

eMachines to miss sales targets

Lingering doom and gloom

  • alert
  • submit to reddit

Build a business case: developing custom apps

eMachines has joined the barrage of revenue warnings spewing from the IT industry this festive season.

The Korean-owned, US-operated PC maker today said it expected sales of between $120 million and $130 million for the fourth quarter ending December 30 - below those of the previous year's Q4. It also warned that losses would be larger than feared - around 19-23 cents loss per share.

It blamed "continued economic weakening, a significant decrease in consumer demand for personal computers, a general slowdown in retail sales, and a channel-wide over supply of personal computer inventory".

The loss will also take into account discounts and extra rebates offered to lure customers into buying its products - the company makes stripped-down machines for Internet access aimed generally at the cheaper end of the market.

eMachines said the loss would also include inventory charges, adding that it didn't expect to see sales pick up before the second half of 2001.

Gross margin is expected to get back to traditional levels in Q2 as the company's inventory normalizes by the end of the first quarter.

Things must be bad with inventory levels - eMachines was one of the first vendors to spot the downward shift in the US PC market and had already cut Q4 PC production by 20 per cent in anticipation. ®

Related Stories

eMachines slashes PC production
eMachines turns up in Europe with Dixons
There is such a thing as a free PC
Xmas panic means PC fire sales
Compaq joins profit warning parade
Gateway in PC price war gloom

Boost IT visibility and business value

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.